No. LRAP Award is not the same as Payment Due and the semantics are important.
After you are fully enrolled and funding permitting, Fosterus disburses LRAP Awards to loan servicers once per month. Sometimes, the amount of your LRAP Award is established with reference to the amount of the Scheduled Monthly Payment reported by your loan servicer, but monthly LRAP Award disbursements are not intended to cover any particular month’s required Payment Due.
Whether and when an LRAP Award disbursement is attributed to your current Payment Due depends on lots of things: whether an LRAP Award is for an amount less than, greater than, or equal to Payment Due, when/if you paid or didn’t pay amounts on your own, when/how much was due in the past or currently, when/how much, if any, is past due, on which date the LRAP Award is received by the servicer, how long it takes the servicer to process the funds they receive, what day of the month your payment is due, etc.
For all these reasons, the LRAP cannot take responsibility for making your monthly Payment Due or meeting your Due Date. If you care about amounts showing as Past Due by your loan servicing company, you will need to make payments directly and take whatever steps necessary to ensure that the loan servicer credits your accounts in a timely and accurate manner.
Once Fosterus disburses an LRAP Award, the date and amount of the disbursement will be viewable via the Fosterus portal under Statements. If you’ve reviewed your Statement and it’s been more than two weeks since the LRAP Award disbursement but you still don’t see the credit posted by your servicer, it may be that your servicer has transfered your account. In the event of transfer, servicers report payment processing delays of 60-90 days, and Fosterus has seen even longer delays.
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